Cotton On fined for selling flammable kids pyjamas

Clothing company Cotton On has been fined $1 million for selling highly flammable children's pyjamas.

Cotton On Kids consented to orders in the Federal Court that it breached the Competition and Consumer Act by selling pyjamas that did not meet Australian standards and for mislabelling them as being of "low fire danger".

Australian Competition and Consumer Commission (ACCC) deputy chair Delia Rickard said the pyjamas and nightdresses were very dangerous.

"The nightwear was so flammable that they should not have been supplied in Australia at all," she said in a statement.